New Delhi, April 7 -- The Income Tax Act, 2025, has come into force from 1 April 2026. One of the objectives of the new Act is to provide a streamlined, simplified tax code with reduced compliance and consolidated provisions. Several sections, scheduled, rules, and forms have been consolidated and reduced. The number of forms has been reduced from 399 to 190. As part of this exercise, a new Form 121 has been introduced. In this article, we will understand what Form 121 is and why it should be submitted to the bank for the Tax Year 2026-27.

As per the Income Tax Act, 1961, bank depositors had to submit Form 15G/Form 15H to the bank to avoid Tax Deducted at Source (TDS). Some depositors were confused about which of the two forms applied to...